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Environmentalism in China is under transformation from the traditional command and control model to emphasize the advantages of economic tools and encourage the participation of the public. Firms are much more aware of the importance of environmental issues, and some of them have practiced environmental activities beyond compliance. In order to help understand the driving mechanism of proactive corporate environmental behaviors from the firm’s perspective, this paper identifies the drivers affecting the proactive environmental management level (EMLp ) based on the institutional theory, and gives an empirical study on the firms based in Changshu city of Jiangsu Province, China. The usable data, collected from the 117 valid respondents in a questionnaire survey, indicates that EMLp is still moderately low currently. Less than 10% of the samples are practicing all the six categorized types of voluntary environmental activities. The econometric exercise confirms a significantly positive effect of the externally mimetic pressure on EMLp , which may attribute to a higher sensitivity of Chinese companies to the market factors. However, the roles of the general public and industrial associations are not significant, showing the marginal power of selected normative pressures. Regarding internal factors, firms, which view environmental issues as opportunities and often arrange internal environmental training, are more likely to adopt proactive environmental activities. More concerns from the general public like neighborhood communities and mass media shall be addressed to enhance the normative power to improve EMLp in China from the future perspective. [Copyright &y& Elsevier]

Abstract: This paper analyzes the functions of a government-oriented disclosure program in China, which rates company environmental performance into five colors and discloses the results to the public. The rating results and their annual changes during 2005–2007 are statistically summarized by using the detailed database provided by municipal environmental protection bureau of the study area: Changshu city in Jiangsu province. The reflexive, deterrent and enhancement mechanisms, preliminarily identified for the disclosure program, are qualitatively evaluated by using the information collected by onsite interviews to 32 program participating firms. In overall, the firms'' environmental performances have been improved. The companies with worse rating records would be more likely to improve their environmental performances in the following years. The disclosure program encourages the firms to be more reflexive to their internal environmental problems. The deterrent and enhancement functions of the program are weak due to the marginal pressure from the classified stakeholders such as investors, business partners and creditors. The influence of the public, such as neighboring communities and environmental NGOs, is weak too. Encouraging serious reactions of firm''s stakeholders to the disclosed rating results should be addressed in order to enhance the effectiveness of the disclosure strategy. [Copyright &y& Elsevier]